Low Mortgage Rates Equal High Housing Affordability

Low mortgage interest rates keep housing affordability high for buyers.  With interest rates remaining at near record lows, that means you can see a significant difference between monthly mortgage payments.  Let’s look at one example for a 30-year fixed-rate $250,000 mortgage loan.  A 1 percent drop from 6% to 5% will save you more than $150 a month.  That’s a savings of almost $54,000 for the life of the loan. 

If you are planning to obtain a sizeable mortgage, the historic low rates  will allow you to buyer a more expensive home at the same monthly payment.   So if you are in a financial position to buy and are looking to stay in your home for a while, it’s a great time to buy! CONTACT US today to see how much you can afford!

 

Mortgage Rates Remain at Near Record Lows

Mortgage rates continued to remain at near record lows this week.  According to Bankrate.com’s national survey of large lenders, the 30-year fixed-rate mortgage fell to 4.24 percent.  A year ago it was at 4.64 percent, and a month ago it was at 4.38 percent.

The survey also found that the 15-year fixed-rate mortgage fell to 3.47 percent while the 5/1 adjustable-rate mortgage rose to 3.17 percent.

With interest rates still low, it’s a good time to buy a home!  When looking for a lender, it’s important to shop around to find the best deal.  Ask each lender about interest rates, points, and a list of fees and costs. That way you will know you are getting the best rate and terms that work for you.

CONTACT US to talk with one of our preferred lenders who can get you prequalified today!

 

 

$100 Down HUD Homes in Texas

Last month, HUD brought back the $100 Down Payment Initiative for owner occupants purchasing a HUD Home with FHA financing.  This is a wonderful opportunity for buyers to purchase a home with little money out of pocket!

There are some requirements for this incentive program.  The property must be a HUD home and purchased by an owner occupant who will live in the home for at least one year.  The buyer must qualify for a loan through FHA financing or FHA Home Repair financing (203k).  The buyer must bid full asking price through a HUD-registered Broker/Agent.

HUD also allows for up to 3% toward closing costs if requested.  If you are interested in available properties, contact us today!

 

Owner Financing and Wraps 101

Wraps are non-qualifying seller financing transactions.  Under a Wrap, an existing seller loan or loans are not assumed by the buyer, but a seller financed loan is stacked on  the Prior Note or Notes.  The seller remains fully obligated for payments under the  Prior Notes and no relationship is established between buyer and  seller lenders . Buyer obligations are limited only to the terms of the Wrap note payable to Seller.

Owner Financing is when part or all of the purchase price, less the buyer’s down payment is carried by the seller.  If the property is free and clear, meaning the seller has clear title without any loans, the seller might agree to carry all the financing.  The buyer and seller agree upon an interest rate, monthly payment amount and term of the loan.  The buyer pays the seller for the seller’s equity on an installment basis.

If you have less than perfect credit, but are considering a home purchase, CONTACT US today for more information on owner financing, lease purchase properties, and wrap financing.

First-Time Home Buying Questions

Do you have home buying questions? We can help! You will find the answers to several frequently asked first-time home buying questions below.

1) Should I Buy or Rent? – Depending on how long you plan on staying in the home, you may choose to buy if you plan on staying in the home for at least 3 years.  There are also many areas of town where it is cheaper to purchase a home than to rent.  Other great advantages to buying is that you will own your home, benefit from tax credits, and build equity.

2) Can I Buy a Home with Bad Credit? – Yes, you can have less than perfect credit and purchase a home.  A few years ago with the subprime market at a peak, you could qualify for a mortgage loan with little trouble.  Lenders are more cautious today but it is possible to qualify even with a past bankruptcy or foreclosure.  Contact a mortgage lender to find out your options.

3) How Much Money Do I Need to Buy a Home? – It really depends on a couple of factors including how much the home costs and what type of mortgage you get.  Generally, you will need to factor in for 3 costs: the earnest money (also called the deposit you put down to show a seller you are serious about buying the home), the down payment, and closing costs.  FHA Loans require as little as 3.5% down.  However if you would like the best interest rate and avoid paying private mortgage insurance, you will need to put down a minimum of 20%.

4) Are There Any Other Costs? – Yes, as a homeowner you will also be resonsible for utilities, property insurance, property taxes, homeowner associations fees and home maintenance and repairs.

5) Do I Need to Hire a Real Estate Agent? – Buying a home can be an overwhelming process.  A real estate agent will walk you through the entire home buying process. A professional real estate agent will act in your best interest and provide guidance and advice so that you make the best decision you can make.

Contact Texas Capital Properties today to get started!